The Georgia housing market continues to be robust in 2023 by a combination of high demand, limited supply, and steadily increasing house selling prices. A study finds that Georgia has the most overpriced housing market in America. According to data from Florida Atlantic University, Georgia has the most overpriced housing market in the United States, with Atlanta topping the list.
Atlanta, Georgia’s capital city, beats out multiple Florida cities, Charlotte, North Carolina, and Memphis, Tennessee, to take the top spot for 2023. The researchers used their own methodology combined with open-source data from Zillow and other providers. The data shows that homes in Atlanta are selling for more than 51% more than what they’re worth, leading to a big difference between how much people are paying and how much the home is actually valued.
Read About: Atlanta Housing Market Trends
The study found that the average listing price in Atlanta was $357,677, but the expected home value was only $236,627. This means that if you’re looking to buy a home in Atlanta, you could be paying over $100,000 more than the actual value of the property. There are several reasons why Atlanta’s housing market is so overpriced.
One of the main reasons is the strong job market and the city’s booming tech center. Atlanta is home to several large technology companies, including Google, Microsoft, and IBM. This has led to a large influx of people moving to the city for work, which has caused housing prices to skyrocket. Another reason why Atlanta’s housing market is so overpriced is that the city is a popular destination for retirees and second-home buyers. Many people choose to move to Atlanta for its mild climate, low cost of living, and easy access to recreational activities.
Georgia Housing Prices And Forecast 2023-2024
The Georgia housing market has been a topic of concern in 2023, with fluctuations in home values and sales activity. As buyers and sellers navigate the uncertainties of the market, many are wondering whether a crash is imminent. Let’s explore the current state of the Georgia housing market, analyze forecasts from experts, and offer insights for both buyers and sellers during these dynamic times.
Here’s an overview of the current market conditions and a look into the top 10 Metropolitan Statistical Areas (MSAs) in Georgia with the most substantial home price growth predictions by 2024:
Zillow, a prominent real estate marketplace, provides valuable insights into the housing market trends in Georgia. As of August 31, 2023, the average home value in Georgia stands at $319,271, reflecting a moderate increase of 0.7% over the past year. Additionally, homes in Georgia typically go pending in approximately 15 days, showcasing a relatively fast-moving market.
Key Metrics as of July 31, 2023:
- Median Sale to List Ratio: 1.000
- Percent of Sales Over List Price: 35.5%
- Percent of Sales Under List Price: 42.4%
- Median Days to Pending: 15
Top 10 MSAs in Georgia for Home Price Growth by 2024
Several Metropolitan Statistical Areas (MSAs) in Georgia are anticipated to witness notable growth in home prices by the year 2024. Below is an extensive overview of the top 10 MSAs in the state, along with their growth projections, starting from a base date of August 31, 2023:
- Thomaston, GA: Projected to experience substantial growth, with an estimated increase of 11.3% by August 31, 2024.
- Toccoa, GA: Expected to witness significant growth in the housing market, with an estimated increase of 9.9% by August 31, 2024.
- Cedartown, GA: Anticipated to experience notable growth, with an estimated increase of 9.7% in home prices by August 31, 2024.
- Cornelia, GA: Projected to see a growth of 8.6% in home prices by August 31, 2024.
- Calhoun, GA: Expected to experience an increase of 8.2% in home prices by August 31, 2024.
- Athens, GA: Anticipated to witness a growth of 7.7% in home prices by August 31, 2024.
- Gainesville, GA: Expected to see a growth of 7.5% in home prices by August 31, 2024.
- St. Marys, GA: Projected to experience an increase of 7.5% in home prices by August 31, 2024.
- Summerville, GA: Anticipated to see a growth of 7.5% in home prices by August 31, 2024.
- Statesboro, GA: Expected to experience an increase of 7.4% in home prices by August 31, 2024.
These projections offer valuable insights for potential homeowners and investors, highlighting the expected growth in various MSAs across Georgia.
When Will House Prices Go Down in Georgia?
Based on the provided data and projections, a significant decline in house prices in Georgia is not anticipated at least until August 31, 2024. The expected trends suggest a trajectory of growth or stability in home prices across various MSAs in the state.
Is It a Good Time to Buy a House in Georgia in 2023?
Considering the moderate increase in home values and the relatively fast-paced market with homes going pending in about 15 days, 2023 could be a reasonable time to consider purchasing a house in Georgia. However, individual circumstances and financial considerations should always be taken into account before making a significant decision like buying a home.
Factors Influencing the Georgia Housing Market:
Several factors contribute to the state of the housing market in Georgia:
- Mortgage Rates: Fluctuating mortgage rates impact buyers’ purchasing power and can affect demand for homes. Buyers may be hesitant to enter the market if rates continue to rise significantly.
- Inventory Levels: The supply of available homes for sale affects market dynamics. A shortage of inventory can drive up prices, while a surplus can lead to price stagnation or decline.
- Economic Conditions: Georgia’s overall economic health, job market, and business climate can influence the housing market. Economic growth typically drives demand for housing.
While the Georgia housing market is experiencing fluctuations, a complete crash in 2023 is unlikely. Steady growth is projected for many MSAs, indicating a relatively stable market. For potential buyers and sellers, it’s crucial to stay informed about market trends and work with experienced real estate professionals to make informed decisions. As always, individual markets may vary, and it’s essential to consider local conditions and expert advice when navigating the Georgia housing market in 2023.
Will The Georgia Housing Market Crash?
We continue to hear rumors of a market crash, but local data does not corroborate this at this time. We’re not seeing any major home price decline or crash in the Georgia housing market just yet. There are certain factors that suggest that the market may remain strong. Georgia has a robust and diverse economy with industries such as logistics, film, and technology, which have been growing rapidly in recent years. The state also has a pro-business environment, low taxes, and a relatively low cost of living compared to other states.
Georgia is predicted to remain a top-ranked state and relocation destination. The flood of new inhabitants will increase competition and limit housing availability, making Georgia real estate even tighter. According to YouGov, Georgia is ninth on the list of all US states sorted from best to worst, according to Americans.
YouGov asked people to choose the better of two states in a series of head-to-head matchups. States were rated based on their “win percentage”, that is: how often that state won the head-to-head matchup when it was one of the two states shown. Georgia Two other destinations for warm weather and ocean coastlines landed in ninth and tenth place, respectively: Georgia (58%) and Texas (58%).
Over the past decade, the state has experienced significant population growth, with an increase of over 1 million people from 2010 to 2020, according to the US Census Bureau. This growth has been driven by a combination of factors, including a strong economy, a relatively low cost of living, and a warm climate.
The influx of new residents has put pressure on the housing market, particularly in cities such as Atlanta and Savannah. As more people move to Georgia, the demand for housing increases, which can lead to rising prices and a shortage of affordable housing options. This has made it challenging for some residents to find suitable housing, especially those with lower incomes.
Another factor that affects the housing market in Georgia is demographic change. The state has a growing number of young professionals and retirees, both of whom have different housing needs. Young professionals tend to prefer urban areas with easy access to amenities, while retirees often prefer quieter suburban or rural communities. This has led to a growing demand for both urban and suburban housing in Georgia.
In addition, Georgia’s population growth has also been driven by a diverse range of ethnic and racial groups. This diversity has contributed to the state’s vibrant culture and strong economy, but it also presents unique challenges for the housing market. Different ethnic and racial groups may have different housing preferences, which can affect the availability and affordability of housing in certain areas.
That being said, there are always risks and uncertainties in any housing market. Factors such as changes in interest rates, job losses, and a slowdown in the economy could potentially impact the demand for housing and cause prices to fall.
In conclusion, while there are some positive signs for the Georgia housing market, it is always important to be cautious and keep an eye on market trends. The strong economy and growing population make Georgia an attractive place to live and do business, but the limited housing availability and increased competition could make it challenging for some buyers.
Data Sources:
- https://www.zillow.com/ga/home-values/
- https://www.zillow.com/rental-manager/market-trends/ga/
- https://fred.stlouisfed.org/series/ACTLISCOUGA#
- https://www.rent.com/research/average-rent-price-report/
- https://www.worldbank.org/en/country/georgia/overview
- https://www.adb.org/news/georgia-economy-grow-3-5-2022-adb
- https://www.georgia.org/demographics
- https://www.zillow.com/research/data/
- https://business.fau.edu/executive-education/housing-market-ranking/housing-top-100/
- https://today.yougov.com/topics/travel/articles-reports/2021/04/13/us-states-ranked-best-worst-according-americans